Sensex and Nifty Plummet as Trump’s Tariffs Shake Global Markets
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Synopsis
On April 4, the Indian stock markets faced a downturn for the second day as investor caution grew after President Trump's tariff announcement, leading to significant declines in major indices.
Key Takeaways
- Sensex fell by 930.67 points to 75,364.69.
- Nifty dropped 345.65 points to 22,904.45.
- Major sectors such as Metal and IT saw declines.
- Rupee gained strength, trading at 85.20.
- India VIX increased by 1.13 percent.
Mumbai, April 4 (NationPress) The Indian stock markets closed lower for the second consecutive day on Friday, as investors adopted a cautious stance following the announcement of reciprocal tariffs by US President Donald Trump.
The Sensex dropped by 930.67 points, or 1.22 percent, finishing at 75,364.69. Throughout the session, the index fluctuated between an intra-day high of 76,258.12 and a low of 75,240.55.
The broader Nifty also experienced a significant decline, closing at 22,904.45, down by 345.65 points or 1.49 percent during intra-day trading.
Market analysts noted, “The recent imposition of unexpectedly high US tariffs has greatly influenced global markets, leading to a bearish sentiment as investors evaluate the wider ramifications.”
They added, “While the direct effects on the domestic market are relatively moderate compared to other major economies, they are nonetheless more significant than initially anticipated.”
Among the stocks listed on the Sensex, Tata Steel, Tata Motors, Larsen & Toubro, IndusInd Bank, Tech Mahindra, and Reliance Industries were the most significant contributors to the decline, with some shares plummeting by as much as 8.36 percent.
Conversely, several major players like HDFC Bank, Bajaj Finance, Nestle India, ICICI Bank, Asian Paints, ITC, and Axis Bank managed to finish in positive territory, with gains reaching up to 1.59 percent.
The broader market experienced even more pressure, with the Nifty Smallcap100 index collapsing by 3.56 percent, and the Nifty Midcap100 index declining by 2.91 percent.
Almost all sectoral indices concluded in the red, with the exception of Nifty Financial Services and FMCG. The most affected sectors included Metal, IT, Oil & Gas, PSU Bank, Auto, and Realty, which witnessed declines ranging from over 2 to 6.5 percent.
The rupee showed a positive trend, gaining 0.16 to reach 85.20, bolstered by declines in crude prices that supported the currency's strength.
According to Jateen Trivedi of LKP Securities, “Gold saw profit booking, with prices dropping by Rs 650 to Rs 89,450 in MCX, following the official announcement regarding tariff pricing.”
He mentioned that this move came as the markets had already factored in the consequences of reciprocal trade tariffs over the preceding months, making profit-taking a logical outcome.
Meanwhile, India’s volatility index, India VIX, which gauges market fear and uncertainty, increased by 1.13 percent to close at 13.76. This uptick in VIX indicates that investors are becoming more cautious amidst escalating global trade tensions.
